Gold Price Forecast: XAU/USD trims gains after hawkish Fed speakers

The XAU/USD advanced to $1,980 after hitting $1,995 earlier in the session.
Housing data from the US from October came in better than expected.
Hawkish Fed speakers and US yields recovering halted the metal’s rise.

Patricio Martín FXStreet

The XAU/USD saw a slight upsurge in Friday's session and is currently trading at $1,980 after hitting a high of $1,995.The price rise was stopped by hawkish words from the Federal Reserve (Fed) officials after the report of strong US housing data which fueled a slight advance in the US Treasuries.

According to the US Census Bureau's monthly data released on Friday, Housing Starts in October increased by 1.9% compared to September's revised 3.1% rise, while Building Permits rose by 1.1% in the same period after experiencing a 4.5% decline in its previous reasding.

In regards to the Federal Reserve (Fed), Susan Collins, the President of the Federal Reserve Bank of Boston, stated on Friday that she observes evidence suggesting that the financial conditions remain favourable for the Fed and welcomed the latest cooling in inflation. However, she then stated that she wouldn't take additional firming off the table, which seemed to have spooked markets.

Elsewhere, the US bond yields are seen with mild gains. The 2-year rate stands at 4.91%, and the 5-year and 10-year yields are seen at 4.46% and 4.45%, respectively. Regarding expectations, markets continue to price in a no-hike by the Fed in December.

XAU/USD levels to watch

Based on the daily chart, the XAU/USD displays a bullish bias with indicators that, despite slightly decelerating, are still in positive territory. The Relative Strength Index (RSI) exhibits a positive slope above the 50 threshold, while the Moving Average Convergence (MACD) histogram exhibits larger green bars. In the larger context, the pair is above the 20,100,200-day Simple Moving Average (SMAs), suggesting that the bulls are also in control in the broader context.

Supports: $1,975 (20-day SMA), $1,930 (100 and 200-day SMA),$1,915.
Resistances:$2,000,$2,030, $2,050.

XAU/USD daily chart

XAU/USD

Overview
Today last price	1981.81
Today Daily Change	0.90
Today Daily Change %	0.05
Today daily open	1980.91

Trends
Daily SMA20	1973.82
Daily SMA50	1926.15
Daily SMA100	1929.19
Daily SMA200	1936.55

Levels
Previous Daily High	1988.02
Previous Daily Low	1956.56
Previous Weekly High	1993.18
Previous Weekly Low	1933.04
Previous Monthly High	2009.49
Previous Monthly Low	1810.51
Daily Fibonacci 38.2%	1976
Daily Fibonacci 61.8%	1968.58
Daily Pivot Point S1	1962.31
Daily Pivot Point S2	1943.7
Daily Pivot Point S3	1930.85
Daily Pivot Point R1	1993.77
Daily Pivot Point R2	2006.62
Daily Pivot Point R3	2025.23

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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